Government should say which capital projects will be scrapped, think tank says

The Fraser of Allander Institute found a roughly £1 billion shortfall between the £8.1 billion of projects set out last June and about £7.1 billion now available, and it has urged the Scottish Government to say which capital projects will be cut; the government will publish an infrastructure delivery pipeline alongside the draft budget on January 13.

The Fraser of Allander Institute has reported a funding shortfall for planned Scottish capital projects and urged the government to tell the public which projects will be scrapped. The think tank compared the £8.1 billion of projects set out in June with about £7.1 billion now estimated to be available. It warned that the gap could require difficult choices on capital spending. The Scottish Government says it will publish an infrastructure delivery pipeline alongside the draft budget on January 13. Key facts: - The FAI estimates a funding gap of around £1 billion for infrastructure projects when borrowing limits are reached. - Projects yet to be completed include a range of national treatment centres and plans to dual the A9 and A96, among others. - The FAI noted a recent uplift to resource spending from UK budget measures that improved the near-term resource position by about £750 million, but said the underlying deficit remains. - The Scottish Government will publish an infrastructure delivery pipeline with the draft budget on January 13, which it says will set out an affordable, deliverable portfolio for the next four years. Summary: The reported shortfall means some planned capital work will likely be deferred or cancelled, with specific projects still to be clarified. The publication of the infrastructure delivery pipeline alongside the draft budget on January 13 is the next scheduled step to show how projects have been prioritised and which will not proceed.